THE UNIVERSITY OF TENNESSEE AT MARTIN
College of Business and Public Affairs
Department of Accounting, Finance and Economics



Course Number: Finance 311

Course Title: Investment Analysis

Term, Level and Credit: Summer 2002, Upper Division, 3 Semester Hours

Course Description: Basic investment concepts, investment theory, fundamental analysis, investment timing stocks, mutual funds, bonds, options commodities, and real estate.

Course Prerequisite: Finance 311 or instructor's approval.

Course Text: Fundamentals of Investment Management, 6th Edition, by Geoffrey A. Hirt and Stanley B. Block, 1999.

Course Objectives: To provide a basic understanding of the procedures, tools, techniques and instruments comprising the field of investments. The emphasis of the course is on the selection of securities and the development of security portfolios for individuals. A second objective is to provide a foundation for advanced study in investment analysis and portfolio management. Finance 311 is a prerequisite for the TVA Investment Challenge course, Finance 471 - Topics in Finance. Course objectives will be achieved through:

Course Requirements: There will be three exams (including the final exam) consisting of true-false and multiple choice questions, problems and short answer essay questions. The dates for the exams are set, the exact chapters to be covered on each exam may vary from those listed on the course outline. Material for the exams will come from the text and class material. The final exam may be comprehensive.

Students are required to complete a portfolio simulation during the summer session. Students will form teams that will "invest" and manage a virtual portfolio of $100,000. The teams will set up portfolios using selected web sites and will actively managed the portfolios. The management will be done under a set of guidelines corresponding to those under the TVA Investment Challenge program.

Each team will write periodic summaries of their management activities and portfolio performance which will include (but is not limited to):

Each team will also present the reports in class. The portfolio management project will be conducted using Internet resources for tracking the portfolios, for security analysis and collection of financial data.

There may also be short assignments using the Internet to collect and analyze data. The assignments will require short written reports either by team or individual students.

Letter grades for the course will be assigned based on the weighted average of the scores for the exams, portfolio project and class presentations using the following weights:

                                    Exam 1                     25%
                                    Exam 2                     25%
                                    Final Exam                25%
                                    Written Reports         15%
                                    Oral Presentations     10%
                                                                    100%

Course grades will be curved. If an exam is missed, the student must give notice before the exam date. The weight of the missed exam date will be added to the weight of the final exam. Any exam missed without notice before the exam date will receive a score of zero and the student will receive a failing grade for the course. No make-up exams will be given. There will be no incomplete grades given, except under the most severe and unusual circumstances.

Class Attendance and Academic Honesty: It is the responsibility and the expectation that each student will attend class. Each student bears the responsibility for all material covered in class and each assignment whether the student is in class or not. Each student is responsible for knowing and understanding the material, and the consequences for not attending class. Any student found cheating will be assigned a failing grade for the course and will be reported for the Vice Chancellor for Student Affairs and to the Dean of the College of Business and Public Affairs for further disciplinary action.

Withdrawal dates:
May 29 - Las day to drop with no record of enrollment
June 12- Last day to drop with a W.
No withdrawals will be permitted after June 12 except for circumstances as specified in the University Catalog, page 36.

Students with Disabilities: Any student eligible for and requesting academic accommodations due to a disability is requested to provide a letter of accommodation from P.A.C.E or Student Academic Support Center within the first two weeks of the term.

THE UNIVERSITY OF TENNESSEE AT MARTIN
College of Business and Public Affairs
Department of Accounting, Finance and Economics
Course Syllabus

Course Number, Section and Semester: Finance 311, Section 010, Summer Session 1, 2002

Instructor: Dr. Arnold L. Redman

E-Mail Address: aredman@utm.edu

Office Location: Business Administration Building, Room 206

Office Telephone: 587-7248

Office Hours: 10:00 - 11:00 MTWTF, other times by appointment.

TENTATIVE SCHEDULE



Date                                 Chapter                                 Topic                                                 Problems
5/28                                                                     Course Introduction
 

5/29                                     1                             Investing in Securities
 

5/30                                     2                         Nature of Stock and Bond Markets
 

5/31                                 2 and 3                 Markets, Transactions and Securities                     3-3,4,5,6,7
                                                                     Laws

                                            4                         Information Sources - Web Sites
 

6/3                                  5 and 6                 Fundamental Analysis - Economic and
                                                                    Industry Analyses

6/4                                     7                        Equity Investing - Valuing Stocks

6/5                                     7                       Stock Valuation Continued                                     3,4,5,6,7,8,9,11,13,14
                                                                                                                                                    15
6/6                                     8                         Financial Statement Analysis

6/7                                     8                         Statement Analysis Continued                                 1,2,6

6/10                                     EXAM 1

6/11                                     9                         Basics of Technical Analysis

6/12                             10 and 11                   Special Situations and Bond Basics

6/13                                 12                           Bond Valuation and Yields                                    1,2,3,4,5,7,8,9

6/14                                 13                            Bond Duration and Yield Analysis                        5

6/17                                 14                             Traditional Derivatives: Convertibles
                                                                            and Warrants                                                  1,2,3,8

6/18                                 15                            Derivatives: Options                                             2,3,7,11,12

6/19                                 16                            Derivatives: Commodities
                                                                        and Financial Futures

6/20                                         EXAM 2

6/21                                 17                            Derivatives: Stock Index
                                                                        Futures and Options

6/24                             18 and 19                     International Investing
                                                                        and Mutual Funds

6/25                                 21                            Market Efficiency and Portfolio
                                                                        Theory and Management

6/26                                 21                            Portfolio Theory: Capital Asset
                                                                        Pricing Model                                                     1,2,3,4,9

6/27                                 22                            Measuring Portfolio Performance:
                                                                        Inclusion of Risk and Return                                 1,2

6/28                                            FINAL EXAM